ACNB Corporation Reports 2025 Third Quarter Financial Results

GETTYSBURG, Pa., Oct. 23, 2025 (GLOBE NEWSWIRE) -- ACNB Corporation (NASDAQ: ACNB) (“ACNB” or the “Corporation”), financial holding company for ACNB Bank and ACNB Insurance Services, Inc., announced net income of $14.9 million, or $1.42 diluted earnings per share, for the three months ended September 30, 2025 compared to net income of $7.2 million, or $0.84 diluted earnings per share, for the three months ended September 30, 2024 and compared to net income of $11.6 million, or $1.11 diluted earnings per share, for the three months ended June 30, 2025.

• Fully taxable equivalent (“FTE”) net interest margin was 4.27% for the three months ended September 30, 2025 compared to 4.21% for the three months ended June 30, 2025 and 3.77% for the three months ended September 30, 2024.

• Return on average assets was 1.80% and return on average equity was 14.66% for the three months ended September 30, 2025.

• Total non-performing loans to total loans, net of unearned income, was 0.43% at September 30, 2025 compared to 0.43% at June 30, 2025 and 0.39% at September 30, 2024. Net charge-offs to average loans outstanding (annualized) were 0.02% for the three months ended September 30, 2025 compared to 0.01% for the three months ended June 30, 2025 and 0.01% for the three months ended September 30, 2024.

• Tangible common equity to tangible assets ratio¹ of 10.14% at September 30, 2025 compared to 9.65% at June 30, 2025 and 10.74% at September 30, 2024. The net unrealized loss on the available for sale securities portfolio was $31.0 million at September 30, 2025 compared to a net unrealized loss of $36.2 million at June 30, 2025 and a net unrealized loss of $36.8 million at September 30, 2024.

• As announced on Form 8-K on October 22, 2025, the Board of Directors approved and declared a regular quarterly cash dividend of $0.38 per share of ACNB Corporation common stock for the fourth quarter, reflecting a $0.04, or 11.8%, increase over the prior quarter, and $0.06, or 18.8%, increase over the same period of 2024.

• ACNB repurchased 61,586 shares of ACNB common stock in open market transactions for the three months ended September 30, 2025.

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¹ _{Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.}

ACNB’s financial results for the first three quarters of 2025 were impacted by the acquisition of Traditions Bancorp, Inc. (“Traditions”) which was completed on February 1, 2025 (“Acquisition”). The financial results for any periods ended prior to February 1, 2025 reflect ACNB on a standalone basis. As a result, ACNB’s financial results for the three months ended September 30, 2025 may not be directly comparable to prior reported periods.

“We are excited to report strong profitability and record quarterly net income for the third quarter of 2025. These strong results are a reflection of our continued commitment to our community banking business model and the successful acquisition and integration of Traditions Bank earlier in the year. The Acquisition is meeting our expectations operationally, financially and culturally.” said James P. Helt, ACNB Corporation President and Chief Executive Officer.

“This quarter represented continued stable asset quality metrics, increased profitability and active capital management strategies including open market share repurchases and a strong dividend. These results are a direct result of our entire team working toward our vision to be financial services provider of choice in the markets we serve by building relationships and finding solutions.”

Mr. Helt continued, “We now look to finish the year strong by managing through the economic cycles and by continuing to diversify our revenue streams with ACNB Insurance Services, ACNB Wealth Management and Traditions Mortgage. We believe that our strong foundation based on community banking principles combined with the growth opportunities before us through our strategic planning objectives will enable us to continue to provide for long term shareholder growth.”

Net Interest Income and Margin

Net interest income for the three months ended September 30, 2025 totaled $32.1 million, an increase of $1.1 million from the three months ended June 30, 2025 and an increase of $11.2 million from the three months ended September 30, 2024. The FTE net interest margin for the three months ended September 30, 2025 was 4.27%, a 6 basis points increase from the three months ended June 30, 2025 and a 50 basis points increase from the three months ended September 30, 2024. The increase in FTE net interest margin from the three months ended June 30, 2025 was driven primarily by a 7 basis points decrease in the cost of interest-bearing deposits as a result of lower rates on higher cost deposits from the Acquisition and lower balances of higher cost deposits from the Acquisition during the three months ended September 30, 2025. For the three months ended September 30, 2025, total average earning assets increased $28.5 million compared to the three months ended June 30, 2025. For the three months ended September 30, 2025, total average noninterest-bearing demand deposits increased $30.5 million from the three months ended June 30, 2025. The accretion impact of acquisition accounting adjustments on loans and deposits from the Acquisition was $2.1 million and $2.2 million for the three months ended September 30, 2025 and the three months ended June 30, 2025, respectively.

The following discussion of increases in average balances and yields compared to the same period of the prior year was driven primarily by the Acquisition. For the three months ended September 30, 2025, total average loans increased $675.4 million compared to the three months ended September 30, 2024. The yield on total loans was 6.29% for the three months ended September 30, 2025, an increase of 73 basis points compared to the three months ended September 30, 2024. For the three months ended September 30, 2025, total average interest-bearing deposits increased $575.6 million from the three months ended September 30, 2024. The average rate paid on interest-bearing deposits was 1.42% for the three months ended September 30, 2025, an increase of 50 basis points from the three months ended September 30, 2024. For the three months ended September 30, 2025, total average noninterest-bearing demand deposits increased $116.5 million from the three months ended September 30, 2024.

Noninterest Income

Noninterest income for the three months ended September 30, 2025 was $8.4 million, a decrease of $271 thousand from the three months ended June 30, 2025 and an increase of $1.6 million from the three months ended September 30, 2024. Insurance commissions for the three months ended September 30, 2025 were $2.5 million, a decrease of $363 thousand from the three months ended June 30, 2025 driven primarily by lower contingent commission income and a decrease of $242 thousand from the three months ended September 30, 2024 driven primarily by timing of policy renewals and a decrease of $121 thousand from the cancellation of policies related to one customer. Gain from mortgage loans held for sale for the three months ended September 30, 2025 was $1.5 million, a decrease of $112 thousand from the three months ended June 30, 2025 and an increase of $1.4 million from the three months ended September 30, 2024. Service charges on deposits were $1.3 million, an increase of $107 thousand from the three months ended June 30, 2025 and an increase of $238 thousand from the three months ended September 30, 2024 driven primarily by the Acquisition and an increase in overall customer activity.

Noninterest Expense

Noninterest expense for the three months ended September 30, 2025 decreased $3.0 million from the three months ended June 30, 2025 and increased $4.1 million from the three months ended September 30, 2024. Merger-related expenses totaled $169 thousand for the three months ended September 30, 2025 compared to $1.9 million for the three months ended June 30, 2025 and $1.1 million for the three months ended September 30, 2024. Salaries and employee benefits expense for the three months ended September 30, 2025 decreased $502 thousand compared to three months ended June 30, 2025 driven primarily by a higher employee vacancy rate, lower incentive compensation expense, lower overtime, conversion related expense and lower health insurance expense, and increased $2.2 million compared to the three months ended September 30, 2024 driven primarily by additional employees attributable to the Acquisition, merit increases, and higher mortgage commissions. Equipment expense for the three months ended September 30, 2025 decreased $237 thousand compared to the three months ended June 30, 2025, driven primarily by a rebate received from a large vendor during the three months ended September 30, 2025 and increased $604 thousand compared to the three months ended September 30, 2024 driven primarily by the Acquisition and the implementation of new additional products into our core processing system. Other tax increased $341 thousand for the three months ended September 30, 2025 compared to the three months ended June 30, 2025 driven primarily by earned income tax credits recognized in the prior period and increased $201 thousand compared to the three months ended September 30, 2024 driven primarily by the Acquisition. Intangible assets amortization increased $825 thousand during the three months ended September 30, 2025 compared to the three months ended September 30, 2024, a result of the Acquisition. Other decreased $628 thousand for the three months ended September 30, 2025 compared to the three months ended June 30, 2025 driven primarily by earned income tax related donations and stale conversion related items written off in the prior period and increased $738 thousand compared to the three months ended September 30, 2024 driven primarily by the Acquisition and higher internet banking services.

Loans and Asset Quality

Total loans outstanding were $2.34 billion at September 30, 2025, a decrease of $5.2 million from June 30, 2025 and an increase of $659.5 million from September 30, 2024. The decrease compared to June 30, 2025 was across residential mortgage, commercial and industrial, real estate construction and consumer and was partially offset by increases in commercial real estate and home equity lines of credit. The increase compared to September 30, 2024 was spread across all loan categories and was driven primarily by the Acquisition. The allowance for credit losses was $23.7 million at September 30, 2025, a decrease of $693 thousand compared to June 30, 2025 and an increase of $6.4 million compared to September 30, 2024. The decrease compared to June 30, 2025 was driven primarily by the movement of construction loans to lower loss rate segments and the paydowns of loans with a specific reserve. The increase compared to September 30, 2024 was driven primarily by the Acquisition.

Deposits and Borrowings

Deposits totaled $2.47 billion at September 30, 2025, a decrease of $58.6 million from June 30, 2025 and an increase of $674.6 million from September 30, 2024. Total interest-bearing deposits were $1.88 billion at September 30, 2025, a decrease of $72.0 million from June 30, 2025 and an increase of $556.4 million from September 30, 2024. Money market and time deposits, included in interest-bearing deposits, decreased $38.3 million and $34.0 million, respectively, since June 30, 2025 and increased $244.2 million and $189.7 million, respectively, since September 30, 2024. The decreases in money market and time deposits from June 30, 2025 were driven primarily by lower balances of higher cost money market and time deposits from the Acquisition and a net decline of $20.0 million of short-term brokered deposits. Included in total deposits at September 30, 2025 were $581.7 million of noninterest-bearing deposits, which increased $13.4 million and $118.2 million from June 30, 2025 and September 30, 2024, respectively. The overall increase in total deposits compared to September 30, 2024 was driven primarily by the Acquisition.

Total borrowings were $335.8 million at September 30, 2025, an increase of $37.4 million and $42.7 million compared to June 30, 2025 and September 30, 2024, respectively. Total borrowings increased from June 30, 2025 driven primarily by an increase in short-term borrowings. The bank executed a three month FHLB borrowing of $25.0 million at a rate of 4.55% for the three months ended September 30, 2025. Simultaneously, the Bank executed a receive-floating, pay-fixed three year interest rate swap at a rate of 3.53%.

Stockholders’ Equity

Total stockholders’ equity was $408.6 million at September 30, 2025 compared to $395.2 million at June 30, 2025 and $306.8 million at September 30, 2024. The increase at September 30, 2025 compared to June 30, 2025 was driven primarily by net income of $14.9 million and a $4.3 million change in unrealized gains in available for sale investment securities slightly offset by dividends paid of $3.5 million and common stock repurchased of $2.7 million for the three months ended September 30, 2025. The increase at September 30, 2025 compared to September 30, 2024 was driven primarily by the common stock equity issued in the Acquisition. Tangible book value¹ per share was $30.87, $29.30 and $29.90 at September 30, 2025, June 30, 2025 and September 30, 2024, respectively.

About ACNB Corporation

ACNB Corporation, headquartered in Gettysburg, PA, is the independent $3.25 billion financial holding company for the wholly-owned subsidiaries of ACNB Bank, Gettysburg, PA, including its operating divisions Traditions Bank and Traditions Mortgage, and ACNB Insurance Services, Inc., Westminster, MD. Originally founded in 1857, ACNB Bank serves its marketplace with banking and wealth management services, including trust and retail brokerage, via a network of 33 community banking offices and one loan office located in the Pennsylvania counties of Adams, Cumberland, Franklin, Lancaster and York, and the Maryland counties of Baltimore, Carroll and Frederick. ACNB Insurance Services, Inc. is a full-service insurance agency with licenses in 46 states. The agency offers a broad range of property, casualty, health, life and disability insurance serving personal and commercial clients through office locations in Westminster, MD and Gettysburg, PA. For more information regarding ACNB Corporation and its subsidiaries, please visit investor.acnb.com.

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¹ _{Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.}

SAFE HARBOR AND FORWARD-LOOKING STATEMENTS - Should there be a material subsequent event prior to the filing of the Quarterly Report on Form 10-Q with the Securities and Exchange Commission, the financial information reported in this press release is subject to change to reflect the subsequent event. In addition to historical information, this press release may contain forward-looking statements. Examples of forward-looking statements include, but are not limited to, (a) projections or statements regarding future earnings, expenses, net interest income, other income, earnings or loss per share, asset mix and quality, growth prospects, capital structure, and other financial terms, (b) statements of plans and objectives of Management or the Board of Directors, and (c) statements of assumptions, such as economic conditions in the Corporation’s market areas. Such forward-looking statements can be identified by the use of forward-looking terminology such as “believes”, “expects”, “may”, “intends”, “will”, “should”, “anticipates”, or the negative of any of the foregoing or other variations thereon or comparable terminology, or by discussion of strategy. Forward-looking statements are subject to certain risks and uncertainties such as national, regional and local economic conditions, competitive factors, and regulatory limitations. Actual results may differ materially from those projected in the forward-looking statements. Such risks, uncertainties, and other factors that could cause actual results and experience to differ from those projected include, but are not limited to, the following: short-term and long-term effects of inflation and rising costs on the Corporation, customers and economy; banking instability caused by bank failures and financial uncertainty of various banks which may adversely impact the Corporation and its securities and loan values, deposit stability, capital adequacy, financial condition, operations, liquidity, and results of operations; effects of governmental and fiscal policies, as well as legislative and regulatory changes; effects of new laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) and their application with which the Corporation and its subsidiaries must comply; impacts of the capital and liquidity requirements of the Basel III standards; effects of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Financial Accounting Standards Board and other accounting standard setters; ineffectiveness of the business strategy due to changes in current or future market conditions; future actions or inactions of the United States government, including the effects of short-term and long-term federal budget and tax negotiations and a failure to increase the government debt limit or a prolonged shutdown of the federal government; effects of economic conditions particularly with regard to the negative impact of any pandemic, epidemic or health-related crisis and the responses thereto on the operations of the Corporation and current customers, specifically the effect of the economy on loan customers’ ability to repay loans; effects of competition, and of changes in laws and regulations on competition, including industry consolidation and development of competing financial products and services; inflation, securities market and monetary fluctuations; risks of changes in interest rates on the level and composition of deposits, loan demand, and the values of loan collateral, securities, and interest rate protection agreements, as well as interest rate risks; difficulties in acquisitions and integrating and operating acquired business operations, including information technology difficulties; challenges in establishing and maintaining operations in new markets; effects of technology changes; effects of general economic conditions and more specifically in the Corporation’s market areas; failure of assumptions underlying the establishment of reserves for credit losses and estimations of values of collateral and various financial assets and liabilities; acts of war or terrorism or geopolitical instability; disruption of credit and equity markets; ability to manage current levels of impaired assets; loss of certain key officers; ability to maintain the value and image of the Corporation’s brand and protect the Corporation’s intellectual property rights; continued relationships with major customers; and, potential impacts to the Corporation from continually evolving cybersecurity and other technological risks and attacks, including additional costs, reputational damage, regulatory penalties, and financial losses. Management considers subsequent events occurring after the balance sheet date for matters which may require adjustment to, or disclosure in, the consolidated financial statements. The review period for subsequent events extends up to and including the filing date of the Corporation's consolidated financial statements when filed with the SEC. Accordingly, the financial information in this announcement is subject to change. We caution readers not to place undue reliance on these forward-looking statements. They only reflect Management’s analysis as of this date. The Corporation does not revise or update these forward-looking statements to reflect events or changed circumstances. Please carefully review the risk factors described in other documents the Corporation files from time to time with the SEC, including the Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Please also carefully review any Current Reports on Form 8-K filed by the Corporation with the SEC.

Contact:
Jason H. Weber 
EVP/Treasurer &
Chief Financial Officer
717.339.5090
jweber@acnb.com

ACNB #2025-10
October 23, 2025

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¹ _{Non-GAAP financial measure. Please refer to the calculation on the page titled “Non-GAAP Reconciliation” at the end of this document.} 
² _{Regulatory capital ratios as of September 30, 2025 are preliminary.}
³ _{Non-performing loans consists of loans on nonaccrual status and loans greater than 90 days past due and still accruing interest.}
⁴ _{Non-performing assets consists of non-performing loans and foreclosed assets held for resale.}

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¹ _{Income on interest-earning assets has been computed on a fully taxable equivalent (FTE) basis using the 21% federal income tax statutory rate.} 
² _{Average balances include non-accrual loans and are net of unearned income.}
³ _{Average balances of investment securities is computed at fair value.}

¹ _{Income on interest-earning assets has been computed on a fully taxable equivalent basis (FTE) using the 21% federal income tax statutory rate.}
² _{Average balances include non-accrual loans and are net of unearned income.}
³ _{Average balances of investment securities is computed at fair value.}

Non-GAAP Reconciliation

Note: The Corporation has presented the following non-GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation’s results of operations and financial condition. These non-GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation’s industry. Investors should recognize that the Corporation’s presentation of these non- GAAP financial measures might not be comparable to similarly-titled measures of other corporations. These non-GAAP financial measures should not be considered a substitute for GAAP basis measures, and the Corporation strongly encourages a review of its condensed consolidated financial statements in their entirety.